Five key challenges for specialty chemical companies
Infiniti research recently released a report on the main obstacles facing specialty chemical companies, highlighting the major challenges in the industry and explaining how they affect the performance of specialty chemical companies. Infiniti said that although the global specialty chemicals market continues to expand, declining profitability and intensified market competition are affecting the performance of specialty chemicals companies.
The major challenges facing Specialty Chemical Companies in 2019 include:
Changing business mix
In the field of specialty chemicals, product diversification and M & A activities are increasing. The business mix is highly dynamic as producers increase and deprive sectors, engage in new market entry and participate in mergers. In addition, globalization has increased the complexity of the business portfolio of specialty chemicals companies.
Dynamic demand model
Uncertain and unpredictable demand patterns are becoming common in the industry. Companies in the industry also have limited knowledge of future customer orders. Growing customer mix across multiple end use markets and visibility to changing demand represent significant challenges.
Expand product mix
In order to increase differentiation, develop strategies for new market entry, and maximize customer loyalty, product innovation in the field of specialty chemicals is increasing. The introduction of new products and frequent adjustments to existing products lead to a significant increase in the number of products produced, resulting in greater operational complexity.
Regulation and compliance
Manufacturers of specialty chemicals are increasingly facing the problem of conformity of product quality documents and procedures. These issues are largely driven by government regulations, end use market requirements or specific customer requirements.
Increase customer intimacy
One of the main trends to promote the development of the industry is to shorten the distance with customers by providing customized products and service arrangements for specific customers. While this is a source of differentiation for specialty chemicals companies, it also leads to increased complexity in other business operations.